T.C. DOKUZ EYLUL UNIVERSITY

FACULTY OF BUSINESS

MARKETING MANAGEMENT COURSE TERM PROJECT

IRMAK AYTEKİN 2009434007

SPRING 2011

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TABLE OF CONTENTS

Company and Product….....................................................................................................2

About Us...…......................................................................................................................3

What is INFINIT? ..............................................................................................................4

Levels of Product ...............................................................................................................5

Product Decisions .................................... ..........................................................................6

Branding Strategy ...............................................................................................................9

Marketing Environment……………........................................................................…….10

Market Segmentation……………...........................................................................……..12

Market Targeting………..........................................................................................……..13

Price………….................................................................................................…………..15

Evaluation About 4P………....................................................................................……..16

Concept Testing………............................................................................................…….17

Marketing Strategy……...........................................................................................……..17

Simulated Test Marketing……..............................................................................………17

Product Life-Cycle Strategies…..........................................................................………..17

Pricing Product……………...............................................................................…………17

Marketing Channels……...................................................................................…………20

Integrated Marketing Communications Strategy…...........................................…………21

Advertising……………...............................................................................……………..22

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COMPANY: MADA SPORTS BAGS & TEXTILE CO.

PRODUCT: INFINIT SOLAR BAG

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ABOUT US

As MADA, we have been in textile-bag sector since 1989, and today we became one of the

leaders in this sector. MADA has been reached to the excellent level of manufacturing by

effective quality system. We have a 1553m2 facility, a management building and 64 staff for

production.

MISSION

We established oriented of market deficiency, supply customers needs and wants to doing this

finding new niche markets.

VISION

To create differences and we present creative and reasonable solution to our customers with

using technology and keep up clean our environment for protect position of our company in

market.

WHY DO WE INVOLVE WITH THIS SECTOR?

Turkish textile industry is one of the largest sector in Turkish economy. Although the Chinese

textile goods has a peak of textile and technology as we mentioned at mission and vision we

started to make difference for customers with using old and new.

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WHAT IS INFINIT SOLAR BAG?

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LEVELS OF PRODUCT

There are three levels. Each level adds more customer value. The most basic level is the core

benefit, which offers "What is the buyer really buying?" the INFINIT Solar bag, the problem

solving benefit.

At the second level core benefit turns into the actual product. We use last trends in fashion and

catch to soul of the century. Ergonomic design also important for an ordinary bag ,and it’s

obvious that important for our product. Another important issue for this product you can use if

the sun wouldn’t be at the sky. You can connect your home electrical system at home.

In the end, actual product turns into the augmented product by offering additional consumer

benefits. The INFINIT offers change within 30 days.

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PRODUCT CLASSIFICATIONS

Products fall into 2 broad classes based on types of consumers that use them-consumer products

and industrial products. Our product is a consumer product.

WHICH TYPE OF CONSUMER PRODUCT?

INFINIT is a shopping product which has less frequent purchase, much planning and shopping

effort, comparison brands on price, quality and style. Price distribution is a selective distribution

in fewer outlets and with convenient prices. Promotion of advertising and personal is selling by

some resellers like DOGUKAN Spor, YASAR Spor or some environmental friendly shops.

PRODUCT DECISIONS

Individual product decisions that include product attributes, branding, packaging, labeling, and

product support services are really important concepts.

1) Product Attributes

Developing a product involves defining the benefits that will offer. These benefits are

communicated and delivered by product attributes such as quality, features, style and design.

Product quality is one of the marketer's major positioning tools that the "INFINIT" can satisfy

stated and implied customer needs. It has a many appearance with different types different style

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and at the same time it's not charging your mobile phones, PDAs or mp3 player, larger bags can

also charge the notebooks and netbooks.

2) Branding

Identifying us of the product and differentiating from competitors. Our brand name is "INFINIT

Solar Bag”. It gives clear message to customer for our aim.

3) Packaging

Packaging for a product must be protective and hold to product. Solar bag itself has almost no

need of packaging because it would be hard to box a big item like this. Also, customers need to

directly see, touch and try the actual bag on. For these reasons, we do not want to box the bag.

However, it is possible to protect electronic parts of solar energy system like solar shells or

batteries. We may put these parts into some small plastic packages in order to keep them safe

during transportation. These packages should be inside of the each solar bag so in this way there

will be no confusion or missing parts. When customers bought the product, they can find these

parts inside of the solar bag, packaged and preserved.

4) Labeling

Labeling identifies the product and brand or describes several properties of the product, it is a

key cog in branding strategy. So it has an utmost importance for solar bag. We designed a fine

tag with some generic information about the product. It’s price, usage, materials used, and more

information about the brand is written on this tag. We have to ensure that the label contain all the

information that the customer may need.

We also have to consider designing the label with brilliant colors and nice looking graphics that

emphasizes the brand’s values. It should attract sportive people and reinforce the brand message.

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5) Product Support Services

The support services of the solar bag keeps a minor part of product’s total offering since there is

a little requirement for it. But still, we have some innovative support functions.

Our brand emphasizes traveling while solar bag provides solar energy for your devices. For this

reason, we need to be able to support our product everywhere. We decided to open some support

centers in each touristic cities of various countries like London, Paris, Madrid, Amsterdam,

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Marmaris, Antalya etc. These centers will provide instant support for our product wherever you

are, whenever you need.

Solar bag has regular 2 years warranty. If the solar shells being disconnected from the bag itself

it is being avoided by warranty . If you are not satisfied with the product you can also return it

for a check that can you buy something else from our shops in 30 days .

6) Product Line Decision

We produce more items within present range of line. So we have chosen a line filling product

line strategy. Our main product is actually the pluggable solar shells to backpacks. Still, we

design different kinds of bags like big backpacks, handbags, laptop bags, sports bags. We also

designed them with various colors like silver, orange, green, or charcoal.

BRANDING STRATEGY: MAJOR BRANDING STRATEGY DECISIONS

1) Brand Positioning

The shop marketers can talk about the product’s attributes like its environment friendliness and

benefits. But this kind of brand positioning is inefficient and not reliable. So we need to build a

stronger position for our brand. Therefore we have to go beyond attributes and position the brand

on beliefs and values with engaging them on an emotional level. This emotional bound should

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have been built by customers themselves. “Solar comes along for the ride” This motto taps into

emotion and helps customers to create the emotional bound by making them remember brand’s

mission.

2) Brand Name Selection

Our product’s brand name is INFINIT, it refers to infinity of solar energy and provides an idea

about the product. Also it is easy to pronounce, short, remembering, distinctive and you can

easily translate it to other languages.

3) Brand Sponsorship

Our company manufactures and sells our own products under the name of INFINIT. So the

product is being launched as manufacturer’s brand name.

4) Brand Development

Our company used to produce only normal bags. But this new solar bag concept brought the

need of a new brand name, because the existing brand names were not enough to reinforce the

new concept. So we decided to create a new name: INFINIT bags.

MARKETING ENVIRONMENT

A) MICROENVIRONMENT

1) The Company

Our marketing department is making decisions within the strategies and plans according to our

top management’s objectives also top managers set company’s mission and policies .

2) Suppliers

As MADA,we know that good partner relationship management results in success both for our

suppliers and us. This is the reason that our company policy is to treat our suppliers as our

partners in creating and delivering customer value. For example we teach our suppliers how to

sell our product ,and how to act with customers.

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3) Marketing Intermediaries

We have chosen the large and growing reseller organizations to work with. Such as YALI Spor,

DOGUKAN Spor , BestBuy (for laptop solar bags) Green living centers also use direct

marketing on internet .Our product is new so we need to advertise it in the best way so we

selected ads agencies and we select Konsepto . We are working with Garanti Bankası at most

because they have offered us the lowest interest rates while we were investing fort his product.

Our insurance company is Axa sigorta . We only have physical distribution channel for online

shopping therefore we agreed with UPS cargo .

4) Customer

Our customers are individual and international market .

5) Competitors

We don’t have any competitors yet because our product in specific and new .

6) Public

Media public : On April Stuff magazine editors wrote an article about our product .

B) MACROENVIRONMENT

1) Demographic Environment

There are more than 70 million people are living in turkey .Our target customer generation is X

and Y . Our people always search for the economical ways in the usage of energy so we expected

have high sales rates .

2) Economic environment

Turkey has a developing economy and this market can offer outstanding marketing opportunities

for this kinds of products. As our researches show that solar bags are new product in Turkish

market.

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3) Natural environment

We use wool, plastic, textile, cables , 600D shell made from recycled , Aluminum frame covered

in UV resistant PU( Aluminum and PU ).

4) Technological environment

The technological environment changes rapidly and we do not see this as a threat , because we

believe our product is a new innovation in the arena of technology.

5) Political and social environment

The laws that are related to competition, fair trade practices, environmental protection, product

safety, truth in advertising, consumer privacy, packaging and labeling, pricing are important . .

Our aim is of course to increase our profits but while we are doing that also it is important for us

to think our employees’ and customers’ rights. The laws related to competition and fair trade

practices are helping us. We try to produce our products in the framework of law and w believe

that our company will benefit from this policy in the long run.

6) Cultural Environment

There are many differences in the eastern and the western parts of Turkey. Western part is lives

more modern than the eastern part. The people living in the cities in the east are preferred to live

more traditionally. Generally the males in whole Turkey are a bit macho and our new product

may not fit for their styles.

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MARKET SEGMENTATION

SEGMENTING CONSUMER MARKET

As MADA first of all we divide segments all market and give a decision easily for our new

product that is INFINIT Solar Bag. We evaluate major geographic, demographic and

psychographic variables.

A) GEOGRAPHIC SEGMENTATION

We evaluate how we operate in different geographic areas. We want to sell our product in

touristic places like Izmir, Bodrum, Marmaris, Antalya. They prefer solar bags to charge their

equipments like laptop or I pods when they are not at hotel.

Also we decide to distribution our product in rural touristic places, like OLUMPUS mountains in

these places tourists can’t find any socket to charge their electronic equipments.

B) DEMOGRAPHIC SEGMENTATION

A) Age: Age is not important for our product for example you can see people on the age of 70-

80 go climbing so we don’t have any limited about age.

B) Gender: Gender also isn’t important for our product, both male and females can use it .

C) Income: Our product does not encompass all income levels. Solar bags price show about

income level and design. Our target income levels that are, medium, and high. In Turkey

everybody that has normal wage can buy it.

C) PSYCHOGRAPHIC SEGMENTATION

Every people have different lifestyle, personality. We produce our product for people who do

sports regularly ,do climbing and regularly go to the trips .

MARKET TARGETING

Now we evaluate the various segments and decide how many and which segments it can serve

best.

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SELECTING TARGET MARKET SEGMENTS

We selected concentrated marketing (niche) as our target marketing because we goes after a

large share of one or few segment or niche. In this market we fined-tuning our product, price and

program to the needs of carefully defined segment . This strategy is suitable for our product and

also more profitably.

DIFFERENTIATION AND POSITIONING

Product position is defined by consumers on important attributes-the place the product occupies

in consumers’ minds relative to competing product. Infinit Solar bags must create a values in

customer minds when enter the market. Solar bags functions must be known about us exactly so

they trust our new product and their minds have not question mark about infinit solar bags.

“Products are created in factory but brands are created in the mind” we must continue our way

with these words.

Another important approach is competitors’ products. Infinit solar bag is the most authentic

because competitors’ product is not the same features like our bags. Many firms’ product gain by

their service department but in our case bags does not depend on service department.

We also create a value proposition (different value) for our customers. Our bags are not normal

these bags are unique, it’s also distinctive because competitors don’t offer the difference. It’s

also affordable, buyers can afford to pay for e differences.

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PRICE

MORE THE SAME LESS

MORE

THE SAME

LESS

If you look at possible value proposition figure, our product is related to more for the same.

Because if you compare our price with other normal sports bag you find it more benefit with the

same or lower price than competitors

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MORE

FOR

MORE

INFINIT MORE FOR LESS

THE SAME FOR

MORESAME FOR SAME THE SAME FOR

LESS

LESS FOR MORE LESS FOR THE

SAME

LESS FOR MUCH

LESS

EVALUATION ABOUT 4P

4P stand for product, price, place, promotion when we think our product infinit solar bags our evaluations are ;

Product: The Infinit Solar Charging Bag is a lightweight solar charger designed to provide power to portable gadgets including Mobile Phones, iPods, MP3 players, GPS devices and hand-held gaming consoles.

The bag utilizes the highest quality 2.4w photovoltaic (solar) panel to harvest power from natural light (Bright Sunlight, Standard Daylight and Artificial Light). Once the energy is captured it is then converted into re-usable power and stored in a high-capacity rechargeable battery.

The Infinit bag is the perfect size for air travel. It has been designed to fit comfortably into overhead flight storage compartments. You will also be fine traveling through airport security.

Price: INFINIT has various models which everybody can afford one. If you like travelling, you can buy a big solar bag for long travels, of course with its compatibly high price. If you are just a netbook user who travels a lot, you can buy a small solar bag with low price. Our price level is not much more higher than regular bags, so if you can afford a regular travel bag, you probably can afford an INFINIT solar bag too.

Place: Our main marketing strategy is based on the “sun” so basicly we have to market this product at sunny places. Seaside cities like Antalya, Bodrum, Marmaris are good choices. Internationally, we can market INFINIT at touristic cities of Italy, Spain or Greece too.

Promotion: Since it is a new product, we don’t think there is a need of promotion.

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CONCEPT TESTING

We tested the INFINIT solar bag with some test groups who travels a lot. 120 people were

involved with the test and after 1 month of testing, we asked them these questions:

Did you understand the concept of the INFINIT Solar Bag?

%83 of the test subjects answered this question positively.

Can you tell us the benefits of INFINIT?

%40 of the subjects mentioned how environmental friendly it is.

%37 of the subjects mentioned about its practical benefits.

%20 of the subjects mentioned about its quality and battery life.

What would be the proper price for INFINIT?

The average amount was 90$.

Would you buy this product?

%80 of the subjects told they will buy an INFINIT.

MARKETING STRATEGY

Target markets are people who likes travelling and can not be away from technology. As MADA

company, we plan to sell about 12000 INFINIT Solar Bags on Summer-2011.

SIMULATED TEST MARKETING

We can test INFINIT in a simulated shopping environment.

For the testing, we gave some money to some test subjects and invited them to a real store where they buy bags and sports equipments. And the researcher noted how many test subjects will buy

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INFINIT. %30 of the subjects bought a solar bag. Then the researchers asked them the reason for their purchase or non-purchase. A few weeks later, they interviewed the consumers by phone to determine product attitudes, usage, satisfaction and repurchase intentions. %92 consumers were pleased with our product.

PRODUCT LIFE-CYCLE STRATEGIES

Product life cycle has five distinct stages: product development, introduction, growth, maturity, and decline. We are in introduction stages now. We promoted the product to create awareness.

PRICING PRODUCT

Consumers are not yet aware of a product like this, so we can’t make them define the actual price. For this reason, we have chosen the cost-based pricing. Cost based pricing starts with product’s actual cost then it continues with cost, price, value and customers. This way, we add regular profit to our cost price.

We make right combination between quality of product and price so we have good value pricing strategy also. Everybody can reach INFINIT with fair price. We have two kind of cost fixed cost and variable cost when we produce much more our fixed costs can decrease per unit so we have to be careful with this information.

As MADA we are experienced at textile sector so our mistake rate will be approximetly “0”. When we look at cost per unit we can see about 11TL. If we look first month analysis our fixed cost 300.000TL variable cost is 30TL our expected unit sales 12000 unit. Target sale prices are:

Large Solar Bags – 140TL

Middle Solar Bags – 70TL

Laptop / Netbook Cases – 50TL

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PRODUCT COST PRICE VALUE CONSUMERS

INTERNAL AND EXTERNAL AFFECTING PRICE DECISIONS

Customer perceptions of value set the upper limit for prices and costs set the lower limit. As MADA we consider a lot of external and internal situations. Internal situations marketing strategy, objectives and marketing mix. External factors are competitors’ price, demand and other environmental factors.

A) Internal Factors

Price is the only elements of MADA’s broader marketing strategy. It is the most important thing for us. Marketing strategy is depend on a our sales and marketing department. Our strategy must be suitable all function of our company. In our marketing strategy includes our market share and profit maximization.

B) External Factors

It is the most important thing is competitors’ prices but none of our competitors have product that is similar to INFINIT so we can move in market more easily.

Second one is demand; people’s wants and needs are the most important things in demand function because in economy, when demand is increases price will also increase. So we must be careful at this function.

Also the other factors are government regulation, taxes, social affairs, social concerns. Government regulation and taxes are the most important because we do not have to do anything for laws, taxes and regulations. When we come to the social affairs and concerns if as a company we follow news daily we can know what to do for people concerns and needs.

NEW PRODUCT PRICING STRATEGY

INFINIT is a new product for our people. Market penetration strategy will be suitable for us at this point. In order to attract large numbers of buyers and market share, we have to set prices as low as possible.

PRODUCT MIX STRATEGY

As MADA we have a lot of product in textile sector so when we set up a price for INFINIT we have to consider our other products. INFINIT’s price must have a positive correlation with our other products. We must choose product line pricing. Customer evaluations of different features and competitors’ prices are the most important things while we are setting up prices.

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PRICE ADJUSTMENT STRATEGIES

Discount and allowances are most important in adjustment strategy. However we do not use any discounts or allowances at the beginning.

However we can only use psychological pricing adjustment. Pricing approach considers the psychology of prices, not just the economics. The price should say something about the actual product. Setting prices very low makes people think the product is not elegant.

In addition, the prices can be adjusted during summer or winter seasons because of the product’s concept. Also, geographical changes may affect our price adjustments.

Initiating Price Changes

In some cases our company may find it desirable to initiate either a price cut or a price increase. In both cases it must anticipate possible buyer and competitor reactions.

Initiating Price Cuts

A possible reason for price cutting is demand excess. At that point, price cut is considerable since the production would not be able to counter current demand.

Initiating Price Increase

As people get more environmental conscious, the demand for alternative energy sources will increase. We are aware of that, so our main price increasing strategy is based on this.

MARKETING CHANNELS

MADA’s downstream marketing channel is a multichannel distribution system which often called as hybrid marketing channel. We use retailers to sell INFINIT. Also we have a direct marketing channel via internet. Using retailers is more difficult then direct selling. We want to control our products and if we use a wholesaler, it may decrease the control. Also it may increase the cost.

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PRODUCTION

Consumer Segment 1

Consumer Segment 2

Retailers

INTEGRATED MARKETING COMMUNICATIONS STRATEGY

A) The Promotion Mix

Advertising: The advertisement of INFINIT is showed on TV, magazines and our web site. Therefore we can reach huge number of customers.

Sales Promotion: When we first launch the product, we give extra charge connectors for different mobile phones as a gift with the product to encourage the purchase or sale of the product.

Direct Marketing: Making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships we use direct mail, telephone to communicate directly with specific consumers.

B) Developing Effective Communication

First step of understanding consumer’s field of experience we identify the target customers then we determine the communication objectives by taking into account buyer readiness stages as creating awareness and knowledge about the product. Thirdly we design the message by using AIDA model. We select rational-clean power for everyone that our product is useful for our rechargeable electronic devices. After that we choose the correct media. We select personal communication like face-to-face, mail for feedback and non-personal one like TV or Web. We select the message source and finally we collect the feedback and evaluate where the product is and where it is going to. After the collection of feedbacks and evaluation we re-shape our campaign to deliver maximum customer satisfaction.

C) Setting the Total Promotion Budget

We use the objective and task method to provide superior value for our customers. We think of it clearly and believe that it's the most convenient method. After our research and calculations we determined 462.000TL promotion and budget.

D) Promotion Mix Strategies

We are planning to use push strategy. Our customers demand the products from resellers, outlets and some environmental-friendly shops.

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ADVERTISING

Setting Advertising Objectives

INFINIT is a new product,that is the reason we should use informative advertising. Our objectives are:

Telling the market about INFINIT Solar Bag. Explaining how INFINIT is used.

Setting the Advertising Budget

INFINIT Solar Charging Bag is a new and product so we have a large advertising budget to build awareness and to gain consumer trial. As MADA we have 262.000TL advertising budget all activities of INFINIT between introduction and decline stage.

Developing Advertising Strategies

Our message: Stay connected to life with power of sun light

Message execution: In our advertisement we use slice of life and mood or image.

Selecting Advertising Media: We have decided to use television, the Internet, and the magazines. INFINIT is a everyday product and it’s notable feature is using clean and recycling energy so we are going to use summer time to put forward our strong side for media timing. This year we are going to use viral marketing advertisement campaign via web to create curiosity of our product. Then when the environmental conditions become our expectations we are going to release our innovative product to solve our customers’ problems Infinitely…

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Strengths: This product has solar system that it can change the sun energy to the electricity it an advantage over others in the industry.

Weaknesses : It doesn’t have any disadvantage relative to the others .

Opportunities : This product is not also new one in the Turkish market but also in international market so this external chances make our firm more profit .

Threats : For now our product dose not have any competitor in turkey so it doesn’t make any threat .

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Market Development (new markets, existing products)

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